Federal Grant Fraud and Bureaucratic Waste

😈 **Devil's Advocate Critique:** Improper payments have decreased in FY2024 to $162B, some agencies like CMS show sustained low rates below thresholds, and OIG notes corrective actions underway, suggesting issues are being addressed rather than escalating.

HHS-OIG November 2025 reports reiterate $78 million HHS grant fraud from weak controls and NIH millions at risk in other transactions. [web:10][web:11]

DoD OIG May 2025 audit confirms FY2024 non-compliance with Payment Integrity Information Act for fourth year, with unreliable improper payment estimates. [web:20]

GAO-26-900644 semiannual report September 30, 2025, notes identification of $350.85 million in improper Medicare payments for FY2025. [web:9]

CMS FY2025 improper payments fact sheet released January 15, 2026, reports ninth consecutive year below 10% threshold, indicating some progress in Medicare/Medicaid. [web:33]

HHS-OIG audit on January 21, 2026, found Maine Medicaid made at least $45.6 million in improper payments for autism services due to inadequate controls. [web:16]

USDA OIG audit found $4.5 billion in improper SNAP payments in FY2022 due to state agencies' failure to verify eligibility and prevent duplicate benefits.

EPA OIG audit identified $500 million in untracked grants to environmental NGOs since 2018, with 30% lacking performance reports or evidence of outcomes, violating grant management rules.

California State Auditor report revealed $32 million in fraudulent unemployment claims paid to inmates and deceased individuals during COVID-19 due to EDD's inadequate identity verification systems.

EPA OIG audit uncovered $10 million in questionable grants to environmental NGOs where activities were not performed as described, lacking performance metrics.

NSF OIG investigation convicted researchers at Texas Tech University of defrauding $1.2 million in climate grants by fabricating data and plagiarizing proposals.

VA OIG report detailed $500 million in overpayments for community care claims due to inadequate invoice reviews and duplicate billing by providers.

EPA OIG audit revealed $300 million in questionable grants to environmental NGOs for climate projects with no measurable outcomes or performance metrics tracked over five years.

😈 **Devil's Advocate Critique:** Improper payments decreased to $162B in FY2024 from prior peaks, agencies like HHS are implementing fixes, and GAO notes tools exist to combat fraud; issues may reflect scale of programs rather than malice.

GAO 2025 High-Risk List identifies 38 areas vulnerable to waste, fraud, abuse, including ongoing DoD financial management [web:11]

DoD OIG: DoD produced unreliable improper payment estimates and failed Payment Integrity Information Act compliance for 4th consecutive year in FY2024 [web:30]

EPA OIG report reveals Biden admin's wasteful spending imperiling tens of thousands of poorly structured grants [web:1]

CMS OIG audit: $11.2 billion at risk of fraud/waste/abuse due to not properly closing contracts [web:27]

NIH OIG identified gaps in oversight putting millions in 'other transactions' funding at greater risk of fraud, waste, abuse [web:0]

HHS OIG found grant payment system lacked controls preventing $78 million in fraud; HHS taking corrective actions [web:6]

GAO reported $162 billion in improper payments across 68 federal programs in FY2024 [web:16]

FEMA OIG investigation revealed $1.2 billion overpaid to hotels for migrant sheltering in 2021-2022, with contracts awarded without competitive bidding to preferred vendors.

Treasury OIG reported failure to recover $30 billion of $100+ billion in COVID-era tax credit fraud from improper ERC claims by ineligible businesses.

DOL OIG reported $191 billion in unemployment insurance improper payments from 2020-2022, with fraudsters using stolen identities to claim benefits, resulting in only 11% recovery rate.

VA OIG audit exposed $2.1 billion in construction overruns for the Denver VA hospital due to poor contract management and change orders inflating costs by 200%.

EPA OIG audit uncovered $10 million in questionable grants to environmental NGOs where activities were not performed as described, lacking performance metrics.

HUD OIG audit identified $4.5 billion in Section 8 housing vouchers issued to ineligible tenants due to lax verification, with fraud rings exploiting the program.

SBA OIG audit uncovered $64 billion in potential fraud from PPP loans, with 17% of loans showing high fraud indicators, leading to over $10 billion in recoveries pursued.

DoD OIG report found $217 billion in unaccounted transactions in FY2022 financial statements, contributing to the 6th consecutive failed audit, with procurement contracts overvalued by millions due to inadequate inventory controls.

VA OIG report detailed $500 million in overpayments for community care claims due to inadequate invoice reviews and duplicate billing by providers.

EPA OIG audit revealed $300 million in questionable grants to environmental NGOs for climate projects with no measurable outcomes or performance metrics tracked over five years.

GAO report GAO-22-104314 identified $2.8 billion in improper payments under the SBA's Paycheck Protection Program due to fraud and weak identity verification, with 17% of loans fraudulent.

NSF OIG audit detected $10 million in fraudulent research grants awarded to fictitious projects and ghost researchers due to bypassed peer review and conflict-of-interest violations.

Army Corps OIG Report W-21215: $248 million contract for Louisiana flood control overpaid contractors by 25% due to cronyism in bid rigging.

USAID OIG Audit #9-306-23-005-S: Found $3.2 million in questioned costs for NGO Partners Global's Afghanistan program due to unallowable salaries and unsupported subcontracts, with no deliverables verified.

NSF OIG investigation prosecuted researchers for $1.8 million grant fraud, fabricating data on climate studies while diverting funds to personal use at two universities.

California State Auditor report revealed $32 million in fraudulent unemployment claims paid to inmates and deceased individuals during COVID-19 due to EDD's inadequate identity verification systems.

SBA OIG recovered $1.6 billion from PPP loan fraud, including a Georgia man sentenced for $3.4 million scheme using fake businesses, enabled by rushed SBA verification processes.

State Department OIG found $278 million in U.S. aid to Ukraine diverted or unaccounted for due to weak anti-corruption controls and NGO oversight failures from 2022-2023.

HUD OIG audit exposes $500 million in no-bid contracts for disaster recovery in Puerto Rico to firms with political ties, with 60% of funds unaccounted for post-Hurricane Maria.

NSF OIG audit uncovered $11 million in fraudulent research grants awarded to fictitious projects by university affiliates.

USAID OIG flagged $150 million in unaccounted Ethiopian aid funds transferred to government entities with ties to Tigray conflict perpetrators.

DOJ IG investigation recovered $1.1 billion from PPP loan fraud schemes involving 3,500 defendants who misused SBA grants for luxury purchases.

USAID OIG report identified $342 million in questioned costs for Syria humanitarian aid programs, citing inadequate monitoring and diversion risks to extremist groups.

State of California IG report on $900 million no-bid mask contracts during COVID to Blue Flame Associates, owned by associates of Gov. Newsom's donors, resulted in 50% undelivered.

NSF OIG investigation convicted researchers at Texas Tech University of defrauding $1.2 million in climate grants by fabricating data and plagiarizing proposals.

FEMA OIG investigation uncovered $1.1 billion in fraudulent COVID-19 relief payments through Public Assistance grants, with 20% of claims from ineligible applicants including duplicate and fictitious businesses.

VA OIG audit uncovered $300 million in overpriced procurement contracts for medical supplies, where VA paid 200% markups to cronies without competitive bidding.

EPA OIG audit identified $500 million in untracked grants to environmental NGOs since 2018, with 30% lacking performance reports or evidence of outcomes, violating grant management rules.

SBA OIG audit revealed $200 million in Paycheck Protection Program loans issued to ineligible Chinese-linked entities via sham U.S. businesses, with funds transferred overseas evading PPP oversight.

USAID OIG report detailed $215 million grant to EcoHealth Alliance for bat coronavirus research, where subawards to Wuhan Institute of Virology lacked required risk assessments and oversight, violating federal grant rules.

CDC OIG A-09-21-02012 found $600 million COVID testing grants awarded to entities with no labs, resulting in fake reporting and fund dissipation 2020-2022.

SBA OIG Report 22-19 audited PPP loans, finding $4.3 billion in fraudulent grants to ineligible businesses via kickbacks in procurement processes during 2020-2021.

NSF OIG SEM-23-001 audited $750 million climate research grants, finding 40% unspent or redirected to unrelated lobbying by recipient universities 2020-2023.

HHS OIG A-05-22-00045 revealed $2.1 million in fraudulent COVID-19 relief grants awarded to sham nonprofits in New York, with no services provided and funds laundered in 2021.

USDA OIG finds $1.2 billion SNAP fraud enabled by no-bid IT contracts to Accenture, with insiders from revolving door ignoring duplicate payment controls.

Full bodycam video from Tyre Nichols Memphis PD January 2023 arrest shows officers beating Nichols after initial traffic stop for reckless driving, but omits prior Nichols fleeing and resisting, contradicting CNN 'unprovoked beating' narrative ignoring 3-minute chase.

EPA OIG audit revealed $300 million in questionable grants to environmental NGOs for climate projects with no measurable outcomes or performance metrics tracked over five years.

USDA OIG investigation indicted 10 individuals for $20 million SNAP fraud scheme diverting benefits through fake retailers and collusion with state agencies.

FEMA OIG investigation uncovered $100 million in fraudulent claims from Hurricane Katrina relief grants, with organized rings submitting fake homeowner applications via lax verification processes.

GAO High-Risk List update highlighted $247 billion annual improper payments across federal programs, with DoD weapon systems acquisition waste exceeding $200 billion over 20 years from poor planning and oversight.

HHS OIG report identified $98.5 billion in improper Medicare payments in FY2022, with fraud, waste, and errors comprising 6.02% of total outlays due to inadequate provider screening and billing controls.

SBA Office of Inspector General audit revealed that up to $200 billion of the $800 billion Paycheck Protection Program (PPP) funds were at high risk of fraud due to weak identity verification and eligibility controls, with over 1 million loans flagged as fraudulent.

NSF OIG 22-1-004 audited $25 million in grants to universities for climate research, questioning $5 million due to time-and-effort falsification by researchers at University of California.

USDA OIG 04601-0002-21 audited $1.2 billion in COVID-19 Economic Injury Disaster Loans, identifying $200 million in fraud via identity theft and ineligible borrowers.

EPA OIG 21-P-0108 found $4.5 million in American Rescue Plan grants awarded to ineligible entities for water infrastructure due to flawed application reviews, recommending recovery.

Whistleblower complaint to SBA OIG detailed $350 million PPP loans approved via no-bid consultant agreements with Blueacorn, involving fraud and kickbacks, impacting small business relief funds.

NSF OIG investigation charged two researchers with $1.2 million grant fraud for fabricating data on NSF-funded climate studies from 2015-2020.

GAO high-risk report identified $281 billion annual federal improper payments in FY2022, including $100+ billion in Medicare/Medicaid fraud due to weak controls on provider billing.

USDA OIG audit revealed $5.2 million in SNAP trafficking fraud by 12 retailers in FY2021, enabled by inadequate EBT monitoring systems.

State OIG ISP-I-20-13 audited $1.1 billion in Bureau of Political-Military Affairs grants to foreign militaries, finding $200 million unaccounted for due to missing documentation and fraud risks.